North East challenger bank Atom has raised £100m from its investors in a move it says will boost its lending capabilities.
The Durham-based bank said the new equity capital had come from long-term shareholders BBVA, Toscafund and Infinity Investment Partners. The investment has come amid a search for funding that began earlier this year and following last Novembers £30m secured from the same investors. But it has been reported the move valued the bank at £362mn, down from a previously reported £435mn.
Atom said the funding round formed part of its long term strategy to "deliver a liquidity event in the future". CEO Mark Mullen has previously said the bank was working to make itself a "credible candidate for IPO" and to be a company that would not only survive the transition but thrive thereafter.
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It comes after Atom reported its first operating profit of £4m in the year to the end of March. Reporting the results this summer, the bank said it had the momentum to "eclipse" the numbers, and has now confirmed it has already done so this financial year with a quarterly run-rate generating more than £100m of annualised net interest income and more than £25m operating profit.
The previously reported growth was driven by a huge influx of customer numbers to 224,000 as savings deposits more than doubled to £6.6bn. It said the new capital would boost its balance sheet growth and allow it to offer faster, easier and better value savings, mortgage and lending products than its high street competitors.
Mark Mullen, chief executive officer at Atom, said: “I’m delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost. Atom continues to grow strongly and sustainably. We are a cautious bank with an excellent track record of lending responsibly and successfully. We have a compact business model and we keep tight control over our costs. We look after our customers by offering them consistently great value and treating them fairly.
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“This money will be put to work to drive growth and to fuel the development of our franchise. 海角视频 customers need better outcomes and better banks. Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone."
In May, Atom appointed former Virgin Money chief financial officer Lee Rochford as chairman to replace Bridget Rosewell. The appointment of Mr Rochford, who helped Virgin Money to float in 2014, was seen as a preparatory step towards Atom's future listing.